Interim Report and Its Relevant Financial Information of the Group
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The board of directors (the “Board”) of Huadian Power International Corporation Limited* (the “Company”) hereby presents the unaudited interim consolidated financial results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2010 (the “Period”) prepared in accordance with the International Accounting Standard 34 “Interim Financial Reporting”. The Group’s interim financial report for the Period is unaudited, but it has been reviewed by KPMG, the international auditor of the Company, in accordance with the Hong Kong Standard on Review Engagements 2410 “Review of interim financial information performed by the independent auditor of the entity” issued by the Hong Kong Institute of Certified Public Accountants. KPMG’s unmodified review report addressed to the Board is set out on pages 56 to 57. The Audit Committee of the Company has also reviewed the 2010 interim report and its relevant financial information of the Group. BUSINESS REVIEW During the Period, turnover of the Group amounted to approximately RMB21,798 million, representing an increase of approximately 26.83% over the corresponding period in 2009; profit after tax attributable to equity shareholders of the Company amounted to approximately RMB26 million; earnings per share was approximately RMB0.004; net asset value per share (excluding non-controlling interests) amounted to approximately RMB2.34. INTERIM DIVIDEND The Board did not propose to declare any interim dividend for the Period. POWER GENERATION During the Period, the power generation of the Group amounted to approximately 62.52 million MWh, representing an increase of approximately 24.88% over the corresponding period in 2009; on-grid power sold amounted to approximately 58.21 million MWh, representing an increase of approximately 24.99% over the corresponding period in 2009; the unit fuel cost for power generation was approximately RMB257.52/MWh; the average utilization hours of coal-fired generating units were 2,760 hours and the coal consumption for power supply was approximately 321.89g/KWh. Interim Report 2010 1 2 Huadian Power International Corporation Limited The Group is one of the largest listed power-generating group companies in the People’s Republic of China (the “PRC”). As at the date of this report, details of the Group’s power generation assets are set out as follows: Equity Installed interest Name of power capacity held by Combination of plant/company (MW) the Company generating units Notes Zouxian Plant 2,540 100% 2 × 600MW + 4 × 335MW Shiliquan Plant 770 100% 1 x 330MW + 1 x 300MW + 1 x 140MW Laicheng Plant 1,200 100% 4 x 300MW Huadian Zouxian Power 2,000 69% 2 x 1,000MW Generation Company Limited (“Zouxian Company”) Huadian Weifang Power 2,000 45% 2 x 670MW + 2 x 330MW Generation Company Limited (“Weifang Company”) Huadian Qingdao Power 1,200 55% 4 x 300MW Generation Company Limited (“Qingdao Company”) Huadian Zibo Thermal Power 433 100% 2 x 145MW + 2 x 71.5MW 2 × 300MW Generation Company Limited heat-power (“Zibo Company”) co-generating units under construction Huadian Zhangqiu Power 890 87.5% 2 x 300MW + 2 x 145MW Generation Company Limited (“Zhangqiu Company”) Huadian Tengzhou Xinyuan 930 93.257% 2 x 315MW + 2 x 150MW Thermal Power Company Limited (“Tengzhou Company”) Shandong Century Electric Power 1,046 84.31% 4 x 220MW + 1 x 110MW Development Co., Ltd. + 2 x 28MW (“Century Power”) (Note 1) Equity Installed interest Name of power capacity held by Combination of plant/company (MW) the Company generating units Notes Huadian Laizhou Wind Power 40.5 55% 27 x 1.5MW Generation Company Limited (“Laizhou Wind Power Company”) Huadian Ningxia Lingwu Power 1,200 65% 2 x 600MW 2 x 1,000MW Generation Company Limited generating (“Lingwu Company”) units under construction Ningxia Zhongning Power 660 50% 2 x 330MW Generation Company Limited (“Zhongning Company”) Huadian Ningxia Ningdong Wind 102 100% 68 x 1.5MW 49.5MW wind power Power Company Limited generating units (“Ningdong Wind Power under construction Company”) (Note 2) Huadian Ningxia Ningdong Shangde 10 60% 10 x 1MW Solar Power Company Limited (“Shangde Solar Company”) (Note 2) Sichuan Guang’an Power 2,400 80% 2 x 600MW + 4 x 300MW Generation Company Limited (“Guang’an Company”) Sichuan Huadian Luding — 100% — 4 × 230MW Hydropower Company Limited hydropower (“Luding Hydropower Company”) generating units under construction Sichuan Huadian Za-gunao 423 64% 3 x 65MW + 3 x 46MW 168MW Hydroelectric Development + 3 x 30MW hydropower Company Limited (“Za-gunao generating units Hydroelectric Company”) under construction (Notes 2&3) Interim Report 2010 3 4 Huadian Power International Corporation Limited Equity Installed interest Name of power capacity held by Combination of plant/company (MW) the Company generating units Notes Huadian Xinxiang Power 1,320 90% 2 x 660MW Generation Company Limited (“Xinxiang Company”) Huadian Luohe Power 600 75% 2 x 300MW Generation Company Limited (“Luohe Company”) (Note 2) Huadian Qudong Power — 90% — 2 × 300MW Generation Company Limited heat-power (“Qudong Company”) co-generating units under construction Anhui Huadian Suzhou Power 1,260 97% 2 x 630MW Generation Company Limited (“Suzhou Company”) Anhui Huadian Wuhu Power 1,320 65% 2 x 660MW Generation Company Limited (“Wuhu Company”) Anhui Chizhou Jiuhua Power 600 40% 2 x 300MW Generation Company Limited (“Chizhou Company”) Huadian Suzhou Biomass Energy 25 78% 2 x 12.5MW Power Company Limited (“Suzhou Biomass Energy Company”) Anhui Huadian Lu’an Power — 95% — 1 x 600MW Generation Company Limited generating unit (“Lu’an Company”) under construction Huadian Inner Mongolia Kailu Wind 300 100% 200 x 1.5MW 99MW wind power Power Company Limited (“Kailu generating units Wind Power Company”) (Note 2) under construction Huadian Kezuozhongqi Wind Power — 100% — 49.5MW wind power Company Limited (“Kezuozhongqi generating units Wind Power Company”) under construction Equity Installed interest Name of power capacity held by Combination of plant/company (MW) the Company generating units Notes Hangzhou Huadian Banshan Power 1,435 64% 3 x 390MW + 1 x 135MW Generation Company Limited + 1 x 130MW (“Hangzhou Banshan Company”) Hebei Huadian Shijiazhuang 1,100 82% 2 x 300MW + 2 x 200MW 2 × 300MW Thermal Power Company Limited + 4 x 25MW heat-power (“Shijiazhuang Thermal co-generating units Power Company”) under construction Hebei Huadian Guyuan Wind Power 100.5 100% 67 x 1.5MW Company Limited (“Guyuan Wind Power Company”) Hebei Huadian Kangbao Wind — 100% — 49.5MW wind power Power Company Limited generating units (“Kangbao Wind under construction Power Company”) Hebei Huadian Complex Pumping- 57 100% 1 x 16MW + 2 x 15MW storage Hydropower Company + 1 x 11MW Limited (“Hebei Hydropower Company”) Hebei Huarui Energy Group 1,563.2 100% — Corporation Limited (“Huarui Company”) (Note 4) Shaoguan City Pingshi Electric 725 100% 2 x 300MW + 1 x 125MW Power Plant Company Limited (B Plant) (“Pingshi Power Company “) (Note 1) Total controlled installed capacity (Note 5) 26,812.0 Total interested installed capacity (Note 6) 23,225.5 Interim Report 2010 5 6 Huadian Power International Corporation Limited Note 1: Century Power has been included into the Group’s consolidated financial statements since 1 May 2010; the installed capacities of Century Power include 56MW capacity of Penglai East-sea Thermal Power Company Limited which is held as to 71% by Century Power. Pingshi Power Company has been included into the Group’s consolidated financial statements since 21 May 2010 and the construction work of the second 300 MW generating unit of Pingshi Power Company is still in the final stage of construction. Note 2: The 12MW wind power generating units of Phases I & II Expansion Project of Ningdong Wind Power Company were connected to the grid and commenced power generation on 1 March 2010; the 10MW solar power generating units of Shangde Solar Company completed construction and commenced production on 1 May 2010; three 65MW hydroelectric generating units of Za-gunao Hydroelectric Company completed the 72-hour trial operation at full loaded capacity as required by the State on 17 March 2010; the second 300MW heat-power co-generating unit of Luohe Company completed the 168-hour trial operation at full loaded capacity as required by the State on 29 May 2010; the 99 MW wind power generating units of Yihetala Project Phases I & II of Kailu Wind Power Company were connected to the grid and commenced power generation on 31 January 2010; the 201MW wind power units out of the 300MW wind power units of Beiqinghe Project of Kailu Wind Power Company in Tongliao were connected to the grid and commenced power generation as at 1 April 2010. Note 3: The Group’s equity interest in Za-gunao Hydroelectric Company increased from 49% to 64% on 12 May 2010. Note 4: As at the date of this report, the interested capacity of Huarui Company held by the Group amounted to 1,563.2MW. Note 5: The controlled installed capacity of the Group refers to the total installed capacity of the Company, its subsidiaries, jointly controlled entity and associates of which the Company is the largest shareholder. Note 6: This is installed capacity of the Company and companies controlled or invested by the Company as at the date of this report, which was aggregated based on the respective percentage of equity interests held by the Company. Newly installed capacity From 1 January 2010 to the date of this report, coal-fired, hydropower, wind power and solar power generating units of the Group totalling 817MW have commenced operation: Date of completion of trial operation at full loaded capacity as required by the Capacity State/commencing power Project Name (MW) generation for the grid Yihetala Project of Kailu Wind 99 31 January 2010 Power Company Phases I&II Expansion Project of 12 1 March 2010 Ningdong Wind Power Company Shiziping Project of Za-gunao 195 17 March 2010 Hydroelectric Company Beiqinghe Project of Kailu Wind 201 1 April 2010 Power Company Shangde Solar Company Project 10 1 May 2010 The second unit of Luohe Company 300 29 May 2010 Total 817 Preliminary projects As at the date of this report, the Group’s preliminary projects progressed smoothly.